Financial Planning Quiz

What can destroy your hard work and financial planning?

• Fire, accident, ill health, or untimely death

• Only fire

• Only ill health

• Only untimely death

What can be purchased to reduce the risks to a manageable level?

• Insurance

• Savings account

• Stocks

• Real estate

What does property insurance protect you from?

• Financial losses resulting from damage to or destruction of your property or possessions

• Financial losses suffered when you are held liable for others' losses

• Financial losses due to unemployment

• Financial losses due to health issues

What does liability insurance protect you from?

• Financial losses resulting from damage to or destruction of your property or possessions

• Financial losses suffered when you are held liable for others' losses

• Financial losses due to unemployment

• Financial losses due to health issues

What is the first step mentioned in the "To-do Soon!" list?

• Identify your exposures to risk and the magnitude of the losses that could occur.

• Assess your automobile insurance coverage and make changes as necessary.

• Buy renter’s insurance with limits tied to the actual cash value of your personal property.

• Review your health insurance policy.

What should you do with your automobile insurance coverage according to the "To-do Soon!" list?

• Cancel it.

• Assess it and make changes as necessary.

• Ignore it.

• Increase the premium.

What type of insurance should you buy with limits tied to the actual cash value of your personal property?

• Health insurance

• Life insurance

• Renter’s insurance

• Travel insurance

What is the minimum limit recommended for an umbrella liability insurance policy?

• $500,000

• $1 million

• $2 million

• $5 million

Why is it important to maintain an inventory of all your insured property?

• To increase the value of the property

• To ensure you can collect what is coming to you in the event of a loss

• To sell the property at a higher price

• To avoid paying taxes

What is the definition of risk according to the learning material?

• Risk is the certainty about the outcome of a situation or event.

• Risk is the uncertainty about the outcome of a situation or event.

• Risk is the same as odds.

• Risk is the probability of a positive outcome.